[The following information applies to the questions
displayed below.]
Upton and Verlander Company uses a job-order costing system. Upton and Verlander has two manufacturing departments—Molding and Fabrication. Upton and Verlander provided the following estimates at the beginning of the year:
Molding | Fabrication | Total | |||||
Machine-hours | 30,000 | 40,000 | 70,000 | ||||
Fixed manufacturing overhead costs | $ | 790,000 | $ | 240,000 | $ | 1,030,000 | |
Variable manufacturing overhead cost per machine-hour | $ | 5.30 | $ | 5.30 | |||
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs:
Job D-70: | Molding | Fabrication | Total | |||
Direct materials cost | $ | 376,000 | $ | 327,000 | $ | 703,000 |
Direct labor cost | $ | 220,000 | $ | 140,000 | $ | 360,000 |
Machine-hours | 23,000 | 7,000 | 30,000 | |||
Job C-200: | Molding | Fabrication | Total | |||
Direct materials cost | $ | 200,000 | $ | 280,000 | $ | 480,000 |
Direct labor cost | $ | 140,000 | $ | 240,000 | $ | 380,000 |
Machine-hours | 7,000 | 33,000 | 40,000 | |||
Upton and Verlander had no underapplied or overapplied manufacturing overhead during the year.
2. Assume Upton and Verlander uses departmental predetermined overhead rates based on machine-hours.
a. Compute the departmental predetermined overhead rates.
b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.
c. If Upton and Verlander establishes bid prices that are 140% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200?
d. What is Upton and Verlander’s cost of goods sold for the year?
2a | ||
Predetermined overhead rate |
||
Molding Department | 31.63 | =5.3+(790000/30000) |
Fabrication Department | 11.30 | =5.3+(240000/40000) |
b | ||
Job D-70 | Job C-200 | |
Direct materials cost | 703000 | 480000 |
Direct labor cost | 360000 | 380000 |
Overhead: | ||
Molding Department | 727490 | 221410 |
Fabrication Department | 79100 | 372900 |
Total manufacturing cost | 1869590 | 1454310 |
c | ||
Job D-70 | Job C-200 | |
Total manufacturing cost | 1869590 | 1454310 |
Add: Markup @40% | 747836 | 581724 |
Bid prices | 2617426 | 2036034 |
d | ||
Total manufacturing cost Job D-70 | 1869590 | |
Total manufacturing cost Job C-200 | 1454310 | |
Cost of goods sold | 3323900 | |
Workings: | ||
Overhead applied: | Job D-70 | Job C-200 |
Molding Department | =23000*31.63 | =7000*31.63 |
Fabrication Department | =7000*11.30 | =33000*11.30 |
[The following information applies to the questions displayed below.] Upton and Verlander Company uses a job-order...
Upton and Verlander Company uses a job-order costing system. Upton and Verlander has two manufacturing departments—Molding and Fabrication. Upton and Verlander provided the following estimates at the beginning of the year: Molding Fabrication Total Machine-hours 30,000 40,000 70,000 Fixed manufacturing overhead costs $ 790,000 $ 240,000 $ 1,030,000 Variable manufacturing overhead cost per machine-hour $ 5.30 $ 5.30 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job...
Help Sav Required information The following information applies to the questions displayed below) Upton and Verlander Company uses a job-order costing system. Upton and Verlander has two manufacturing departments-Molding and Fabrication. Upton and Verlander provided the following estimates at the beginning of the year: Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding Fabrication 28,000 38,000 $ 780,000 $ 230,000 $ 5.20 $ 5.20 Total 66,000 $1,010,000 During the year, the company had no beginning or ending...
Upton and Verlander Company uses a job-order costing system. Upton and Verlander has two manufacturing departments—Molding and Fabrication. Upton and Verlander provided the following estimates at the beginning of the year: Molding Fabrication Total Machine-hours 30,000 40,000 70,000 Fixed manufacturing overhead costs $ 730,000 $ 220,000 $ 950,000 Variable manufacturing overhead cost per machine-hour $ 5.50 $ 5.50 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job...
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CH Upton and Verlander Company uses a job-order costing system. Upton and Verlander has two manufacturing departments-Molding and Fabrication. Upton and Verlander provided the following estimates at the beginning of the year: Molding Fabrication Total Machine-hours 25,000 35,000 60,000 Fixed manufacturing overhead costs $ 800,000 $ 290,000 $1,090,000 Variable manufacturing overhead cost per machine-hour $5.60 $ 5.60 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs-Job D-70 and Job...
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Required information [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year: Molding Fabrication Total Machine-hours 29,000 39,000 68,000 Fixed manufacturing overhead costs $ 730,000 $ 260,000 $ 990,000 Variable manufacturing overhead cost per machine-hour $ 5.30 $ 5.30 During the year, the company had no beginning or ending inventories and it started,...
Z Seved Help Save & E neyMCU HUIFFOLUI! [The following information applies to the questions displayed below.) Upton and Verlander Company uses a job-order costing system. Upton and Verlander has two manufacturing departments-Molding and Fabrication. Upton and Verlander provided the following estimates at the beginning of the year: Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding Pabrication 28,000 38,000 $ 780,000 $ 230,000 $ 5.20 $ 5.20 Total 66,000 $1,010,000 During the year, the company had...
Required information (The following information applies to the questions displayed below.) Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year: Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding Fabrication 30,000 40,000 $ 770,000 $ 280,000 $ 5.90 $ 5.90 Total 70,000 $1,050,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold...
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